The Nation in Summary; Big Unions Buy Security

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March 7, 1982, Page 004002 The New York Times Archives

When the outline of a federally imposed wage concession agreement between the Chrysler Corporation and the United Auto Workers was released in 1980, Douglas Fraser, president of the U.A.W. called it ''the worst economic settlement we've ever made.'' He added: ''The only thing worse is the alternative -which is no jobs.''

Last week, as the autoworkers approved a contract with Ford Motor Company that effectively freezes wages through 1984 and defers costof-living increases, a recession-wise Mr. Fraser said he was pleased that his members ''understood and supported the historic breakthroughs.'' Like the teamsters union, which saw more than 120,000 members lose their jobs last year and last week accepted an agreement calling for the freezing of wages and a reduction in the number of cost-of-living payments, U.A.W. members had recognized that ''no jobs'' is no alternative at all. Last week's report from the Big Three auto makers of a 26.9 percent slide in new car sales in the end of February was only the latest such.

The Ford agreement marks the first time in automobile industry history that benefits have been sacrificed for job security. However, the U.A.W. won certain points it had long sought. The company, which could save as much as $1 billion over the 30 months of the agreement, pledged not to close any domestic plants for two years and guaranteed laid-off workers with 15 years seniority an income until they reach retirement age.

Partly in response to the Ford agreement, union members at the General Motors Corporation voted last week to resume contract negotiations that broke off Jan.28. To some economists, who see steadily increasing wages as a major cause of inflation, the Ford agreement represents an encouraging trend. Others, however, see the concessions as an opening for corporations to ''move in'' on unions in a time of weakness.

A version of this article appears in print on March 7, 1982, on Page 4004002 of the National edition with the headline: The Nation in Summary; Big Unions Buy Security. Order Reprints|Today's Paper|Subscribe